Any chance of PPI back?

[grahamm123]

Hi
I paid my IVA off ahead of schedule in 2012, which meant all my creditors were paid out the amounts they would have expected. Over the last couple of years I have claimed PPI for the RBS.. They have paid me back the PPI, but the said that are withholding 6k of money on a card mentioned in the IVA and they would have received an amount during the closure/completion of my IVA. My question is, can they legally withhold that 6k? When I asked the RBS for the money they came back with this:

Further to your last email, I would like to take this opportunity to explain that the Bank retains its right of set-off notwithstanding that you have been discharged from your Individual Voluntary Agreement (IVA). Set-off is the Banks right to apply any payment (including any interest) it makes to you in connection with your PPI claims to reduce or pay in full the debts you owe to the Bank. Set-off is a legally recognised principle that the Financial Ombudsman Service are aware of.



Under the terms and conditions of your IVA, the Bank has the right to set-off any debts due to you against the debt which you owed to the Bank when you agreed your IVA. Therefore, when the Bank made an offer to you (in respect of the PPI taken out prior to the IVA) the Bank was entitled to off-set the offer against your existing debt, even though your IVA has ended and this is what we have done. I can confirm that the amount of £6,889.74 has now cleared your credit card debt under credit card ending 1600.

I am sorry but there is no further payment due to you.

Yours sincerely



Vicki Haslam



Vicki Haslam | Executive Concerns, Contact and Support | Remediaton Operations

natwest group

Have I got any chance of getting the money do you think?

[Foggy]

RBS often take this stance and, to date, they have not been challenged. Personally, and this is uninformed opinion only, I believe that the do not have the right of set off in the case where an IVA has dealt with the former debt. However, as things currently stand, any PPI refund has to be paid into the trust created by the IVA for distribution between the former creditors as it legally belongs to them all. This is another reason why RBS are not usually challenged on this as the consumer (you) would not be getting it anyway.